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Parents and kids and money

As parents, we understand the importance of literacy. We sit for hours reading with our children. However, children must be “literate” about money matters, too.

Learning how to think about money and manage it wisely is an equally important life skill. We must patiently help our kids “sound out” the many ways to control money. Our kids will learn by doing. Some lessons will be thrilling. Others will be frustrating, even painful.

In the end, we hope that our children will grow into financially responsible adults. The rewards are life-altering: living within their means, free from the anxieties of debt, and secure in their future.

This section will give you tips and tools for teaching money literacy – and help you assess your ability to model good financial habits. Read on!

Just for Moms

Three Golden Money Rules

April is around the corner and that means it is time to celebrate National Financial Literacy Month! This is a great opportunity to teach (or remind) your kids about the three core principles of money management that will have value for a lifetime!

1. You can't spend what you don't have
Learning to wait for what you want is a hard lesson at any age, but one that will keep your kids out of future debt. Set savings goals and work with your child to budget a certain amount of allowance towards that goal.

2. The small things add up
While the words 'compounding interest' may be a bit complicated to understand, the underlying concept of "even small things add up" can be easily communicated. Reward your child with an extra quarter for every week they don't take money out of their piggy bank.

3. Be a smart shopper
Understanding the value of money and the importance of thinking before spending is integral to sound financial judgment. One fun way to get this message across is to play a bargain hunting game when food shopping. Have your kids scour the shelves for certain items to find the lowest price and if you opt for something more costly, explain your why (e.g., size, quality, other specific attributes).